Paris (Web Desk): France is grappling with a major political crisis following Prime Minister Michel Barnier's defeat in a National Assembly confidence vote on Wednesday.
The vote, which saw 331 lawmakers supporting a no-confidence motion, marks a rare loss of confidence for a French government, the first since 1962.
Barnier's resignation, along with that of his government, is now expected after his controversial decision to use special constitutional powers to pass parts of the budget without full parliamentary approval.
The budget, aimed at reducing France's budget deficit by $63.07 billion, faced opposition from both the far-left and far-right, who accused Barnier of imposing harsh austerity measures.
Far-right leader Marine Le Pen described the budget as reckless and detrimental to the country, while the left-wing France Unbowed (LFI) party demanded President Macron’s resignation in response to what they deemed the failure of his administration's policies.
This political turmoil comes after Macron’s call for a snap election in June, which resulted in a deeply divided parliament.
The situation leaves the French government with little clarity on how to handle the 2025 budget, as the current deadlock threatens to extend into next year.
Macron now faces a difficult choice: either appoint a new prime minister who can gain cross-party support or allow Barnier’s government to remain in a caretaker capacity.
Another option could involve passing emergency measures to extend the current budget provisions, though this could carry significant legal and political risks.
In the meantime, the crisis is rattling financial markets, with France's borrowing costs rising, and the country's stock market, the CAC 40, experiencing a nearly 10% decline.
The French economy is facing additional challenges, with the euro down nearly 4% against other currencies.
Macron's rivals, including Le Pen, are increasingly vocal in their calls for his resignation, while his supporters warn that the political instability could have severe economic consequences.
France is in a state of political and economic uncertainty, with no clear resolution in sight. The outcome of the current turmoil could have wide-ranging implications for the country's fiscal stability and its role within the European Union.